The federal government has opted to transition from solar net metering to a gross metering system in a bid to discourage solar energy usage and encourage reliance on costly grid electricity.
The Ministry of Energy has communicated to the International Monetary Fund (IMF) that net metering is undermining the revenue streams of distribution companies (DISCOs).
According to reports, under the new gross metering system, consumers will be required to sell all the electricity generated by their rooftops to the grid and then repurchase what they need.
This decision comes in response to the increasing number of households turning to solar energy to circumvent expensive grid electricity, which can cost approximately Rs. 62 per unit with additional charges.
The energy ministry has clarified to the IMF that the proliferation of solar panels has resulted in reduced demand for grid electricity, leading to increased payments for idle capacity and quarterly tariff adjustments. Over the past ten months, solar panels with a capacity of 6,800 MW have been imported.
The IMF views payments for idle capacity as a significant factor contributing to the escalation of electricity costs and has recommended a review of the policy on captive power generation.
Currently, this policy permits industrialists to utilize cheaper gas for their in-house electricity requirements. However, the government may discontinue this captive gas policy next month, compelling industries to rely on the more expensive grid electricity.
